Work to close HMP Reading will begin immediately and it is expected to shut at the end of the year.

Mr Wright said all staff should be offered alternative roles in the prison estate or the opportunity to leave on voluntary terms.

Offenders at the prison will be moved to other suitable prison accommodation.

HMPs Blundeston, Dorchester and Northallerton will also be closed and a new 2,000 place prison will be built in Wrexham.

A second big new prison is proposed to replace the existing Feltham Young Offenders Instition, including a youth facility.

Reading East MP Rob Wilson said it was important to consider the future of the Reading Prison site.

He said: "In recent years it has been a youth offenders institute and has been cramped and not fit for purpose.

"Staff have done a fantastic job in difficult circumstances, so my first thoughts are for them.

"I will be demanding a meeting with the minister to ensure staff have every opportunity to be redeployed or are supported to find suitable alternative employment.

"Nonetheless, the decision offers an opportunity to do something new and positive with the land.

"The important thing now is that we have a proper consultation of local people so they can have their say on what is the best use we can make of the site, while deciding at the same time whether all or part of the heritage of the prison is worth preserving.

"It is important that local people have their say on the future of this landmark site.

"I would encourage anyone who has ideas to contact me so that we ensure that the Ministry of Justice does the right thing with the land."

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The prison was built in 1844 as Berkshire County Gaol and was based on the design of Pentonville Prison in London.

HMP Reading was designated a local prison in 1973 and then as a remand centre and YOI, holding prisoners between the ages of 18 and 21, in 1992.

It has a mixture of single and double accommodation cells contained on three Victorian style wings and a further resettlement unit for young men up to the age of 26.

But it is probably best known for its most famous inmate, Oscar Wilde, who was sent there in 1895 after being convicted of gross indecency and sentenced to two years hard labour.

His stay inspired Wilde to write the poem The Ballad of Reading Gaol while in exile in France.